Blood Money by Julian Page

important milestone in our ‘credible deterrence’ strategy. I have just returned from Southwark Crown Court where the case against Glyn McGarry and his retired father-in-law David Appleton has just reached a very successful outcome. The pair have both been found guilty and sentencing will occur in due course. So I’m therefore very pleased to announce that we’ve achieved the first ever criminal convictions for insider dealing.”
    A universal cheer erupts, filling the room, and for the first time following months of low morale there are smiles on the faces of Rebecca’s colleagues.
    Hillary continues “Forty two year old solicitor Glyn McGarry, whilst acting in his professional capacity as legal adviser at Teslacom clearly abused a position of trust. He tipped off his retired father-in-law David Appleton that his company was about to be taken over by a US conglomerate. The retired businessman then spent more than £25,000 on 190,587 Teslacom shares. When the deal was announced to the public at the beginning of May 2010 the share value soared and a month later Appleton sold his entire holding, netting a £46,350 profit. On September 3rd, Appleton gave McGarry a cheque for exactly half that amount.”
    Hillary holds everyone’s full attention, despite many of them already knowing the details of the case. “What we should be really pleased about is that the judge stated in his summing–up that he considers insider trading not to be a victimless crime and that left unchecked it undermines confidence in the integrity of the market.”
    â€œSince its creation, the FSA’s record of bringing insider traders to book has been lamentable. Until now, it has been believed that insider dealing cases are too complex to go before a jury and therefore only civil cases requiring a lower burden of proof have been pursued. In practice, the tribunals have still been applying what was effectively a criminal standard of proof and if the accused were found guilty such tribunals would then only apply a trivial fine. At this moment in time, there is an unacceptably high level of market abuse in the UK, and I believe it is only through criminal prosecutions that we are going to make people think twice. Fines have not been taken seriously, but a prison sentence represents a credible deterrent. Today’s success will bring a change in the public’s perception of the FSA. They will see that we are an effective force in fighting market abuse.”
    The Enforcement Director stops and takes a sip from her glass of water. Momentarily checking her notes, she continues.
    â€œTraders have been under the belief that market abuse is normal activity. Insider information is never wasted, and the abusers frequently pass on such tips to their friends. The perpetrators believe no real crime is being committed and that it won’t be detected anyway.
    This morning’s success at Southwark will be broadcast far and wide. Very soon, the City will understand that market abuse is a socially unacceptable crime. Today is just the start and further criminal convictions will follow. We’ve begun to show people that insider dealing is an offence that can put you in prison. At the end of their criminal trial, bankers will need to take a toothbrush with them when they go down to Southwark Crown Court to be sentenced.” She pauses and takes another sip. “- Does anyone have any questions?”
    There is an embarrassingly hesitant silence. The Director comes across as being quite intimidating to everyone she meets, a perception created from her displays of intense and steely determination. Hillary waits and scans to and fro across the room for a show of hand. At last, someone stumps up the courage to pose the question that everyone is thinking, but no one seems willing to ask.
    â€œThese cases are complex. They’re taking at least a year a-piece to process. Gathering the evidence, trawling